Daily Market Commentary: Higher Volume Buying
It was another good day for indices. Volume climbed in a confirmed accumulation day, following through on yesterday's recovery. This keeps the November rally intact, and nicely sets up the 'Santa Rally'.
The Russell 2000 managed an upside breakout from its channel. This coincided with a close above the 50-day MA. Technicals also improved, with the Directional Movement Index the only indicator to fall shy of a bullish turn. Small Caps are outperforming the Tech indices.
The Nasdaq continued its advance, but it didn't make it to its 50-day MA.
The S&P finished just shy of its 50-day MA, but given action in the Russell 2000, it should have enough buying juice to see an upside break. However, relative strength continued to weaken against the Small Cap index.
Tomorrow might not be the day, but this rally looks good to see a push above respective 50-day MAs. The 'Santa Rally' is in play.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The Russell 2000 managed an upside breakout from its channel. This coincided with a close above the 50-day MA. Technicals also improved, with the Directional Movement Index the only indicator to fall shy of a bullish turn. Small Caps are outperforming the Tech indices.
The Nasdaq continued its advance, but it didn't make it to its 50-day MA.
The S&P finished just shy of its 50-day MA, but given action in the Russell 2000, it should have enough buying juice to see an upside break. However, relative strength continued to weaken against the Small Cap index.
Tomorrow might not be the day, but this rally looks good to see a push above respective 50-day MAs. The 'Santa Rally' is in play.
---
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
